BUSINESS MODELS Innovative business design by Peter Fisk
Email: [email protected] Phone: +44 7834483830 Twitter: @geniusworks Website: www.theGeniusWorks.com
East Small
West Big
Relevant Average
© Peter Fisk 2015
Imagination Capability Collaborative Independent
Disrupting Evolving
© Peter Fisk 2015
Consumer Emotional
Pull
Business Rational
Push
© Peter Fisk 2015
Iconic design
iPod Brand
U2 Vertigo
iTunes
Podcasting
iPod Phone
Special Edition
Exclusive Releases
Music Store
Legalising Filesharing
Success Story
Apple
White cables
Imitation And buzz
Ad Graphics
60G
Photo
Video Desperate
Housewives
Mini
Shuffle
Nano
Motorola
(RED)
Steve Jobs iMac
ARM v Intel
Volume of innovation efforts Last 10 years
Business model
Finance Networking
Channel
Delivery Brand
Customer experience
Core process
Process Enabling process
Product performance
Offering Product system
Service
Where most innovation happens
© Peter Fisk 2015
Business model
Finance Networking
Channel
Delivery Brand
Customer experience
Core process
Process Enabling process
Product performance
Offering Product system
Service
Cumulative value creation Last 10 years
Where innovation has most impact
© Peter Fisk 2015
Archetypes of BUSINESS MODEL DESIGN
with thanks to Board of Innovation
with thanks to Board of Innovation
with thanks to Board of Innovation
with thanks to Board of Innovation
Make and distribute
business model eg CocaCola
Microsoft
Spectrum retail
business model eg Amazon
Marks & Spencer
Make and sell direct
business model eg BMW,
HSBC
Niche retail
business model eg ToysRUs, Wiggle
License to make
business model eg ARM, Ed Hardy
Curated retail
business model eg Fab,
Positive Luxury
Membership club
business model eg Costco,
Quintessentially
Crowdfunded ventures
business model eg Kickstarter,
Zidisha
Opensourced community
business model eg RedHat,
MySQL
Subscription payment
business model eg FT.com,
Graze
Buyer and seller marketplace
business model eg Etsy,
NYSE
Micro payments
business model eg Flattr
Grameen Danone
Collaborative consumption
business model eg Buzzcar,
Regus
Regular Replacement
business model eg Gillette, Nespresso
Branded Consortia
business model eg Cisco,
Spar
Advertising or Sponsorship
business model eg Google,
Metro Newspapers
Listed or Promoted
business model eg Monster
Network builders
business model eg Hotmail,
Demand then Made
business model eg ZaoZao, Threadless
Auction retail
business model eg eBay, Sotheby
Knowledge and time
business model eg McKinsey,
Harvard
Franchised retail
business model eg McDonalds,
Subway
Certification and endorsement
business model eg ISO,
Verisign
Remainder retail
business model Eg Saks,
Vente Privee
Multulevel marketing
business model eg Tupperware,
Natura
Group buying
business model eg Groupon, Huddlebuy
Reverse auction
business model eg Priceline Freemarkets
Shared rental
business model eg Zilok,
Hilton
Tradeable currency
business model eg Bitcoin Air Miles
Freemium pay within
business model eg Angry Bird,
Coursera
Transaction facilitator
business model eg Paypal,
Visa
Pay as you go
business model eg AzuriTech
Techshop
Dynamic pricing
business model eg Expedia,
Uber
Reputation builders
business model eg Tripadvisor, PaywithaTweet
Customer data
business model eg Facebook,
23andMe
Non-profit business
business model eg Oxfam Wikipedia
Maker models Channel models Crowd models Payment models Exchange models Asset models
business model design 36 archetypes of
BUSINESS MODEL DESIGN acceleration lab
Imagine that your business adopted an alternative business model … the sharing model of Airbnb … the subscription
model of Graze … the replacement model of Nespresso … the freemium model of Skype … the ingredient model of Lycra …
What would be the opportunities to
1. engage your customers more deeply? 2. disrupt your competitors?
3. find new sources of growth?
Amazon
Aussie Farmers
Ekocycle
Etsy
Threadless
Local Motors
Spotify
Netflix
Moven
M-Pesa
GE
23andMe
Patients Like Me
Narayana Hospitals
business program
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INNOVATION
business
program INNOVATION
Smarter Thinking
Creative Ideas
Business Innovation
Profitable Solutions
Design thinking Business models Strategic execution
Strategic Horizons
Managing Delivery
Customer Insight
Shaping Designs
Customer Propositions
Business Models
Making it Happen
Leading Performance
• Business strategy, models, plans • Creating and capturing value • The business model canvas • Mapping and innovating business
• Existing and potential customers • Framing value, jobs to be done • Relieving pain, Creating gains • Value propositions and pricing
• Products and services • Channels, service and pricing • Resources, suppliers, partners • Costs and revenue streams
• Connecting and testing • Defining and optimising • Storytelling and communicating • Transitioning and Implementing
• Future back plans and priorities • Defining horizons for delivery • Now forward critical paths • Milestones for market impact
• Organisation, process and culture • Aligning people and resources • Engaging all stakeholders • Migrating from old to new world
• Delivering value propositions • Engaging the target customers • Delivering a better experience • Testing and evolving over time
• Leading, not just managing • Measuring and rewarding people • Pivoting as markets change • Balancing today and tomorrow
The Business Innovation Program challenges you to create a better future for your organisation and function. It explores the possibilities to innovate every aspect of business, driven by smarter thinking, better design and effective implementation.
• Making sense of the real world • Framing problems in better ways • Asking the right questions • The design thinking process
• Immersion in customer’s world • Exploring what matters to them • Redefining context on their terms • Focusing and framing objectives
• Divergent ideation processes • Considering new possibilities • Learning from parallel worlds • Exploring extreme users
• Convergent design process • Exploring emerging concepts • Testing, evaluating and shaping • Defining a better solution
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business
program INNOVATION
Objective: Thinking like a designer, fusing the potential of people, technology and business to solve the right problems and develop better solutions. Duration: 2 days
Smarter Thinking
Creative Ideas
Design thinking
Customer Insight
Shaping Designs
• Making sense of the real world • Framing problems in better ways • Asking the right questions • The design thinking process
• Immersion in customer’s world • Exploring what matters to them • Redefining context on their terms • Focusing and framing objectives
• Divergent ideation processes • Considering new possibilities • Learning from parallel worlds • Exploring extreme users
+genius
• Convergent design process • Exploring emerging concepts • Testing, evaluating and shaping • Defining a better solution
business
program INNOVATION
Business Innovation
Profitable Solutions
Business model
Customer Propositions
Business Models
• Business strategy, models, plans • Creating and capturing value • The business model canvas • Mapping and innovating business
• Existing and potential customers • Framing value, jobs to be done • Relieving pain, Creating gains • Value propositions and pricing
• Products and services • Channels, service and pricing • Resources, suppliers, partners • Costs and revenue streams
• Connecting and testing • Defining and optimising • Storytelling and communicating • Transitioning and Implementing
Objective: Designing a better business model, driven by target customers, delivering superior profitability. Duration: 2 days.
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business
program INNOVATION
Value creation
12 months 24 months 36 months
Horizon 1 Outputs
Horizon 2 Outputs
Horizon 3 Outputs
Horizon 3 Developments
Horizon 2 Developments
Horizon 1 Developments
Evolving brand narrative and customer experience, acceleratin
g growth
Strategy is agile
, combining incremental and disruptive innovation
Strategic execution Strategic Horizons
Managing Delivery
Making it Happen
Leading Performance
• Future back plans and priorities • Defining horizons for delivery • Now forward critical paths • Milestones for market impact
• Organisation, process and culture • Aligning people and resources • Engaging all stakeholders • Migrating from old to new world
• Delivering value propositions • Engaging the target customers • Delivering a better experience • Testing and evolving over time
• Leading, not just managing • Measuring and rewarding people • Pivoting as markets change • Balancing today and tomorrow
Objective: Preparing to implement the new business model through future-back planning that defines priorities and horizons, to deliver change and market impact Duration: 2 days.
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The program is customized to the challenges and opportunities of you and your business, and can be held at the location of your choice, or hosted by GeniusWorks
at our leaders retreat on the banks of the River Thames, just outside London.
At your place or ours business
program INNOVATION
Peter Fisk leads the program He is a bestselling author, inspirational keynote speaker and expert consultant in helping leaders to develop innovative strategies for business and brands. He is a Professor of Strategy, Innovation and Marketing at IE Business School, one of the world’s top ranked business schools, and leads his own company, GeniusWorks, a boutique consulting firm, helping clients around the world to develop more innovative business and brand strategies. He features on the Thinkers 50 “Guru Radar” as one of the best new business thinkers. Having trained as a nuclear physicist, Peter moved to managing brands like Concorde at British Airways, helping Microsoft to adopt a value-based marketing model, and Virgin to launch into new markets. He has worked in every sector and region of the world. As CEO of the world's largest marketing organisation, the Chartered Institute of Marketing, he became a global authority on what's best and next in business and markets. Finding his own space, he founded GeniusWorks, with offices in London and Istanbul. He now works with the leaders of businesses - as diverse as Aeroflot and Coca Cola, DSM and Mars, Philosophy and Red Bull, Sabre and Santander, Tata and Virgin, Visa and Vodafone - to think bigger and smarter, develop innovative strategies, bolder brands, and accelerate growth. Peter’s best-selling book "Marketing Genius" explores the left and right-brain challenges of success, and is translated into 35 languages. It was followed by five others – “Business Genius” on leadership and strategy, “Customer Genius” on customers and experiences, “People Planet Profit” on sustainable innovation - and most recently "Creative Genius" defining what it takes to be Leonardo da Vinci in the 21 Century. His new book "Gamechangers ... Are you ready to change the world?" is published in late 2014, based on extensive research into the 120 companies who are shaking up markets, and making sense of how they innovate and win. It explores the challenges of new markets, changing customers, brand building, digital media, new business models, inspiring leadership and positive impact. Peter was described by Business Strategy Journal as "one of the best new business thinkers". He is thoughtful and practical, combining high-energy keynotes with high-impact workshops. Each one is uniquely designed for the specific audience, their issues and aspirations. Helping people to find their own space, to be leaders of change - to be bold, brave and brilliant.
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Find out more Email: [email protected] Phone: +44 7834483830 Twitter: @geniusworks Website: www.theGeniusWorks.com